Santos brings first Pikka section one wells on-line on Alaska’s North Slope
Australian vitality firm Santos has begun steady manufacturing operations on the Pikka section one oil venture on Alaska’s North Slope, with the preliminary manufacturing wells now on-line.
The venture is at the moment delivering roughly 20,000 barrels per day (bpd).
The corporate expects to start out stress assist by way of seawater injection over the approaching weeks and plans to incrementally deliver additional manufacturing wells on-line because the venture develops.
Santos is aiming to attain plateau manufacturing of roughly 80,000bpd in the course of the third quarter of 2026 (Q3 2026).
In response to Santos, Pikka section one is anticipated to deliver round 400 million barrels (mbbl) of gross proved plus possible (2P) reserves into manufacturing.
The corporate has additionally indicated that a further 600mbbl of gross contingent useful resource may assist additional staged growth past the primary section throughout the Pikka Unit.
Santos managing director and CEO Kevin Gallagher mentioned: “The primary manufacturing wells are actually on-line and delivering steady manufacturing. We are going to start stress assist by way of seawater injection and produce extra wells on-line progressively, constructing manufacturing towards our plateau goal of roughly 80,000 barrels per day within the third quarter of this yr.
“Pikka is a high-quality, low-cost oil growth with sturdy economics and lengthy reserves life benefitting not solely Santos and its three way partnership associate Repsol but additionally key stakeholders together with the State of Alaska and Alaska Native Firms. The venture is about to generate strong money flows and assist sturdy shareholder returns over the approaching years.”
Santos holds a 51% stake within the venture and serves as operator, whereas Spanish firm Repsol owns the remaining 49%.
The Australian firm grew to become operator following its acquisition of Oil Search in December 2021.
Santos and Repsol reached a remaining funding determination for the $2.6bn Pikka section one venture in August 2022.
Final month, Santos confirmed it’s going to transfer ahead with the Agogo manufacturing facility tie-in venture in Papua New Guinea.
“Santos brings first Pikka section one wells on-line on Alaska’s North Slope” was initially created and revealed by Offshore Expertise, a GlobalData owned model.
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